Companies upbeat on Myanmar projects

▶ US pressure unlikely to damage booming trade with ASEAN bloc

Despite the reported cancellation of Chinese- invested solar power projects by Myanmar authorities, most Chinese companies are confident of the investment prospects in Myanmar, though some have expressed concerns about whether political volatility may cast shadows on their businesses there.

While the US has increasingly viewed ASEAN as a geopolitical battlefield to confront China and sought all means to deter China’s investment, analysts said that the US is unlikely to succeed in availing itself of opportunities to rope in Southeast Asian countries and damage booming China- ASEAN economic and trade relationships.

Myanmar’s government cancelled tenders by Chinese companies for the construction and operation of 28 solar power plants for “breaching the tender regulations,” the Irrawaddy reported.

The media report said that the companies “repeatedly postponed signing the power purchase agreements” after the military took over state power in February 2021. Among the listed companies are Sungrow Power Supply Co and a consortium of Shwe Taung Development Co & GCL System Integration Technology.

A manager surnamed Lu with GCL System Integration Technology Co ( GCL), which specializes in clean energy, confirmed to the Global Times on Wednesday that the company won bids for two photovoltaic ( PV) projects in Myanmar last year, but both have been delayed due to Myanmar’s political upheaval.

“The projects have been halted since last year, without clear information from the Myanmar authorities about what we should do,” Lu said, noting that the company invested a lot of human resources and capital in the bidding process. However, the incident didn’t seem to affect most Chinese companies’ confidence in investing in Myanmar against the backdrop of improving economic and trade cooperation between China and Southeast Asian countries.

Chinese companies’ projects in Myanmar have recovered well since February last year, with some power projects remaining in normal operation, said a source familiar with the Myanmar situation.

“With the improvement of the business environment in Myanmar, some Chinese centrally administered enterprises have been making inspection trips to the Southeast Asian country for potential opportunities, mainly in the infrastructure sector,” the person said.

Recently, the US has hastened efforts to step up economic engagement with ASEAN countries in order to put some pressure on China.